It noted that while fourth quarter revenue missed its forecast, profit before tax and earnings were better than it had expected, mainly on stronger-than-expected contributions from the associates and joint ventures and from better-than-expected returns in the oilseed and grains unit.

The final divided of 7 Singapore cents a share brought the 2017 dividend per share to 10 Singapore cents, up 54 percent on-year and beating Daiwa’s forecast for around 8 cents a share.

“We expect the company’s earnings growth in the near term could be driven by lower feedstock prices and higher production output (and hence higher capacity utilisation levels),” it said.

Daiwa rates the stock at Buy with a S$3.76 target.

The intraday high of S$3.13 could act as initial resistance, while the January 29 high of S$3.23 could act as a near-term cap.